DC-based energy fund manager EIG is back in market with its latest fund, affiliate title Infrastructure Investor understands, looking to raise about $3 billion for EIG Energy Fund XVIII, which is believed to have been launched in the middle of this year. The latest vehicle, though, comes with a greener twist.
While declining to comment on fundraising matters, managing director and ESG director Emily Rodgers said that the manager has introduced Paris-aligned emission targets for the fund. The penalty, should it fail to meet such targets, will see employees and management forfeit 25 percent of the carried interest from the fund.
EIG’s most recent deal saw it spend $4.8 billion this month to buy 25 percent of Spanish group Repsol’s oil and gas exploration division. However, Fund XVIII is expected to focus on lower carbon investments across the energy spectrum. There is, of course, an incentive to do so now.